France: How can the tax burden be reduced?
A significant share of the French population complains about the excessively high level of the tax burden. But what can be done to reduce this tax burden? A c omparison of public spending by type between France and the other euro-zone countries can be of help. It shows that France differs from the other euro-zone countries primarily as regards: Public spending on pensions; Public spending on economic measures (mainly support for companies); The efficiency of the public sector (the productivity of public sector employment is 13% lower in France than in the other euro-zone countries). A reduction in the tax burden in France would therefore require: An increase in the retirement age (continuously lowering the level of pensions is ineffective and dangerous); A reduction in support for companies, a normal counterparty of a reduction in the corporate tax burden; An increase in labour productivity in the public sector.